Seek (SEK)

The market reacted favourably to news that online job classified and education company
Seek
would float its Chinese offshoot Zhaopin in August. Seek’s share price gained about 13 per cent in the past five days to be the third strongest mover over the period. This brings total gains to just 42 per cent in the past year. Based on a similar price-earnings multiple for its nearest competitor, 51job, which is listed on the Nasdaq, Zhaopin could be worth about $650 million. Seek owns 78 per cent of the business, with the rest held by Crown chairman James Packer. Seek intends to keep a stake in Zhaopin after the listing. The news came as Seek announced an 11 per cent rise in net profit to $67.5 million in the first half of fiscal 2013. Revenue from job ads locally declined 2 per cent, but Zhaopin’s revenue rose 8 per cent. The Chinese unit’s profit contribution rose to $8.6 million in the half, up $1 million on the previous corresponding period.